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RE: Notes from a Novice Trader: New Diesel Pool, More Rewards

in LeoFinance3 years ago

Thank you for the information! There is one thing that is not clear to me. If I add liquidity to a pool that does not give LP rewards, do I have any profit? And in pools that do give LP rewards, is there any profit in addition to those tokens?

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Those are good questions, and I would like to know the answers myself.

If I add liquidity to a pool that does not give LP rewards, do I have any profit?

(Emphasis added)

While I don't know the answer yet, my guess is that you won't profit in the sense of earning a reward; however, if you want to swap some of your base token for an equivalent amount of quote token (or vice versa) it will be cheaper than if you made a regular trade at the DEX.

And in pools that do give LP rewards, is there any profit in addition to those tokens?

(Emphasis added)

Here I don't know the answer, either, but here is my guess: if the rewards include the base token or the quote token or both, that would be the profit along with the other tokens.


I'll pass along your questions to the latest edition of @leomarkettalk's Daily Crypto Markets Live Blog to see with people there if my answers check out or to discover what point of consideration I missed.

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Thanks! Your answer makes a lot of sense. Thank you very much also for bringing my doubt to Daily Crypto Markets Live Blog. I'll keep an eye out for the response.

You're welcome. While I think my answers make sense also, sometimes the correct answer turns out to be something that never occurred to me. It will be a while before we both get answers to your original questions.

Posted Using LeoFinance Beta

UPDATE--

So far you and I have 1 answer to your question Below is my comment in the Live Blog and that answer:

Posted Using LeoFinance Beta